Holisol Logistics bets big on booming e-commerce market in India
Supply chain and Logistics solutions company Holisol Logistics is expecting its top line to grow over 60 % to nearly Rs 40 crore this fiscal year because of the growing popularity of online shopping /e-commerce in India,
The company will also be opening two large multi-user fulfillment centers (FCs) in Bangalore and Kolkata cities, along with seven smaller centers in tier two cities trying to help e-commerce firms to ensure faster and more efficient delivery.
Holisol which is founded in 2009 is currently providing supply chain and Logistics solutions to top e-commerce players like freecultr.com, fabfurnish.com, officeyes.com, and Jabong, among several others.
“Presently, we are running eight fulfillment centers servicing multiple clients. But, we are seeing a rapid growth in online shopping, which in turn is leading to e-commerce firms feeling the need to further expand logistics and back-end operations,” Holisol co-founder Rahul Dogar told PTI.
Holisol is helping online commerce firms streamline their back-end operations to deliver products to the consumer in the stipulated time, he added.
“Our value proposition for the e-commerce companies is to work like their extended logistics team. We design-implement-manage and have capability to help design the logistics set-up, take responsibility for implementation and finally manage the daily operations,” he said.
Currently, Holisol has overall warehousing space of nearly 4.5 lakh sq ft handling 40,000 orders on a daily basis, Dogar said.
Apart from 75 employees on its payrolls, Holisol also has 1,500 people working at its FCs on a contractual basis.
“There is an increasing demand for firms like ours with e-commerce firms increasingly adopting same day delivery format. We will open two large FCs in Bangalore and Kolkata this year. We already have 2 large ones running in Delhi and Mumbai,” Dogar said.
The firm has planned to set up 7 smaller (7,000- 10,000 sq ft area) fulfillment centers to expand servicing in tier II and III cities like Guwahati, Ahmedabad, Vishakhapatnam and Chandigarh, he added.
“In the 2013-14 fiscal, we clocked a turnover of Rs 24 crore and for this fiscal, based on the growth projects, we expect to reach Rs 40 crore,” he said.
The opportunity in supply chain and logistics solutions for online shopping segment is estimated to be Rs 3,500-4,000 crore, a major part of which is last mile delivery to the customers, Dogar said.